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The High-Growth mutual fund earned a return last year of 11% and had a beta of 1.3. The Value Stock fund earned a return of
The High-Growth mutual fund earned a return last year of 11% and had a beta of 1.3. The Value Stock fund earned a return of 16% and had a beta of 1.7. The risk-free rate was 2%, and the market return was 9%. Did either fund earn an abnormal return? Positive or negative? The expected return for the High-Growth mutual fund is %. (Enter as a percentage and round to one decimal place.) The expected return for the Value Stock fund is %. (Enter as a percentage and round to one decimal place.) Did either fund earn an abnormal return? Positive or negative? (Select the best answer below.) O A. The expected return on High-Growth is 11.1%, The fund's actual return was below the expected return by 2.1%, so it had positive abnormal return. The expected return on Value Stock is 13.9%. The fund's actual return was better than the expected return by -0.1%, so it had a negative abnormal return. B. The expected return on High-Growth is 13.9%, The fund's actual return was below the expected return by -0.1%, so it had negative abnormal return. The expected return on Value Stock is 11.1%. The fund's actual return was better than the expected return by 2.1%, so it had a positive abnormal return O C. The expected return on High-Growth is - 0.1%. The fund's actual return was below the expected return by 11.1%, so it had negative abnormal return. The expected return on Value Stock is 2.1%. The fund's actual return was better than the expected return by 13.9%, so it had a positive abnormal return. O D. The expected return on High-Growth is 11.1%, The fund's actual return was below the expected return by - 0.1%, so it had negative abnormal return. The expected return on Value Stock is 13.9%. The fund's actual return was better than the expected return by 2.1%, so it had a positive abnormal return
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